Nearly two months after the termination of the agreement for the large-scale investment in the Larnaca port and marina, Kition Ocean Holdings has issued a new statement criticising the Government’s handling of the process for transferring assets related to the port and marina. The company alleges defamation and reserves its legal rights.
In its statement, Kition Ocean Holdings says that on May 27, 2024, the Government “issued a termination notice for the Concession Agreement, the legality of which is disputed, regarding the Larnaca Marina and Port.”
“The Government ordered Kition Ocean Holdings to immediately vacate the premises of both the Marina and the Port of Larnaca, intending to acquire all rights to the Project.” The company further adds that the Government “chose not to implement a handover period that would have allowed for a smooth transition of operations and assets. Instead, they arrived with police escort but lacked a clear plan or direction on how to proceed without negatively impacting the Larnaca Port and Marina.”
“This is despite the Concession Agreement providing the Government with the option to set a notice period before any termination takes effect, thereby enabling Kition Ocean Holdings to assist in the orderly transfer of assets during a transitional phase.”
The former contractor claims that the Government’s “complete incompetence” in managing this situation is the root cause of all problems in the operation of the port and marina, even affecting the transfer of employees, operations, and assets.
Kition Ocean Holdings states that it “has demonstrated remarkable restraint in dealing with the Government’s daily inadequacies but has been making continuous efforts to ensure that the transfer is completed as soon as possible.”
However, the company adds that “the Government, facing public criticism for the issues that arose in the operation of the Port from various affected parties, including professional truck drivers, employees, and Trade Unions, has displayed unprecedented bad faith by attempting to shift the blame onto Kition Ocean Holdings.”
“The Government has repeatedly misled the media and, by extension, the public by attributing the delays, shortcomings, and problems in the operation of the Port and Marina to Kition Ocean Holdings’ alleged reluctance to cooperate in the transfer of assets. These claims are entirely false and detached from the truth and actual facts.”
Following the termination of the Concession Agreement, two meetings were held to discuss the handover process. During these meetings, “Kition Ocean Holdings requested the Government to appoint an IT specialist who would collaborate with Kition’s own IT expert for the transfer and migration of codes to various software.”
“However, despite detailed explanations, the Government failed to grasp the necessity of involving an individual specially trained in IT and the need for dedicated servers for the transfer of the Marina Master software and other software. Eventually, Kition Ocean Holdings had to design a step-by-step process to facilitate the situation.”
Furthermore, Kition Ocean Holdings allegedly repeatedly requested the Government to specify who should take ownership of the various machinery and to prioritise the most urgent machinery for immediate transfer.
“However, the Government failed to understand the process and the fact that the transfer and conveyance had to be declared to the Road Transport Department. It was only after the second meeting on July 17, 2024 that the Government took steps to plan the transfer and conveyance of the machinery”, the company claims.
Regarding the weighing bridges, Kition Ocean Holdings sent a letter on June 20, 2024, inquiring whether the Cyprus Port Authority holds a calibration certificate, as the existing certificate was registered in the company’s name. “The Government only agreed to refrain from using Kition’s certificate for the operation of the bridges on July 17, 2024, and the transfer of the weighing bridges was subsequently carried out.”
The company refutes and denies as false and misleading any suggestions that it has “locked the machinery and is refusing to hand it over to the Government. As stated during the meeting on July 17, 2024, all machinery keys are in the possession of the employees, and the Government has access to all machinery. Furthermore, the machinery has been available to the Government since May 27, 2024.”
Kition Ocean Holdings further notes that the Government’s actions and statements are causing significant harm to its reputation, and as such, “the company reserves all its legal rights.”
The company adds that it was the Government’s decision to unlawfully terminate the Concession Agreement with immediate effect and demand the immediate vacating of the Project premises ‘without first considering the implications and the need for a well-planned process to transfer the many and varied assets, which is now resulting in delays and complexities.’
Kition Ocean Holdings concludes by stating that it “is committed to making every effort to ensure a smooth and effective transfer of assets, in compliance with legal requirements and common practices. However, this requires the timely and appropriate cooperation of the Government to achieve a successful outcome.”
